Interactions caused by new entrants in an industry are a severe source of dynamism when the entrants introduce a strategy that varies significantly from those used by incumbents.

Question

Quizplus · Accepted Answer

New entrants who bring a distinct strategy can disrupt incumbent firms and create competition, leading to innovation and change within the industry. This can bring dynamism to the industry and cause significant disruptions.

Interactions Caused by New Entrants in an Industry Are a Severe